Re: Buckley finally sees the light


"Harlow Wilcox" <Harcox_Willow@xxxxxxxxxxxxx> wrote in message
news:Y5GdnUewK5f2SG3enZ2dnUVZ_s6dnZ2d@xxxxxxxxxxxxxxx
Harry Thompson wrote:

Oh, stuff and nonsense Harlow. No, the cash isn't sitting there in
somebody's pocket. It's IOUs backed by the full faith and credit of the
United States. All the debt of the United States is in the same
condition. If the Trust Fund is bad, so is all other US debt.


Congratulations on totally misunderstanding the situation. The problem
that all the conservative doom-sayers are moaning about is the inability
of the government, under either current or reasonably higher tax rates, to
pay off the SS IOU's and simultaneously fund essential government services
that the American public expects. They can't just issue more debt
instruments to roll over the SS debt, as they've been doing; actual cash
is going to be needed to pay the SS beneficiaries. The only way to raise
that cash and still fund government operations is to raise taxes, big
time.It's not a question of repudiation of government bonds backed by full
faith and credit, it's a question of fiscal responsibility and the
continued willingness of the public to help cover up the willful
misconduct and fiscal malfeasance of Congresses and the administrations
past (and present).

Your argument won't do. The government needs cash daily, never mind for
Social Security. I am looking at the Tentative Auction Schedule and 4-week
bills are auctioned weekly. 2-week cash management bills are auctioned
frequently too, but I'm not sure of the schedule.

The purpose of these bills is to raise dollars to pay immediate expenses.
The government doesn't have the dollars in its pockets, but it has access to
the money markets where it does get them.

As the SS IOU's come due, the government will obtain the dollars from the
money markets just like it does for any other bills, notes and bonds.

It is not a problem.

Hap



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